ZKTECO CO.(SZ:301330)2024-08-29 08:58Financial Performance - The company's operating revenue for the reporting period was ¥903,103,158.77, a decrease of 3.64% compared to ¥937,182,670.00 in the same period last year[13]. - Net profit attributable to shareholders was ¥78,637,727.33, down 11.40% from ¥88,754,335.62 year-on-year[13]. - The net profit after deducting non-recurring gains and losses was ¥67,172,205.06, representing a decline of 28.90% compared to ¥94,476,476.50 in the previous year[13]. - The net cash flow from operating activities was ¥66,632,321.85, a significant drop of 49.03% from ¥130,730,027.12 in the same period last year[13]. - The total assets at the end of the reporting period were ¥3,798,491,466.69, a decrease of 3.20% from ¥3,923,900,732.70 at the end of the previous year[13]. - The company's total revenue for the period was approximately 1.6 billion CNY, with a year-over-year decrease of 9.32% in domestic sales and a slight decrease of 0.87% in overseas sales[61][62]. - The gross profit margin for smart office products improved by 5.88% year-over-year, reaching 62.95%, despite a 10.34% decline in revenue[61]. - The overall R&D expenditure increased by 4.62% compared to the previous year, indicating a commitment to innovation[63]. - The total profit for the first half of 2024 was CNY 89.8 million, down from CNY 109.2 million in the same period of 2023, representing a decline of about 17.7%[154]. Risk Management - The company emphasizes the importance of risk factors and corresponding countermeasures in its management discussion[1]. - The company has detailed its future risk factors in the management discussion section of the report[1]. - The company acknowledges risks associated with the inability to achieve expected returns from fundraising investment projects due to potential changes in market demand, industry structure, and economic or political conditions[100]. - The company is exposed to foreign exchange risks due to its international operations, particularly with significant sales denominated in USD and EUR[99]. - The company faces increasing market competition, particularly in the biometrics industry, necessitating ongoing product optimization and brand enhancement[92]. Corporate Governance - The report outlines the company's governance structure and responsibilities[2]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible personnel[1]. - The company has established multiple communication channels with investors to ensure transparency and protect their rights[110]. - The company held its annual general meeting on May 15, 2024, with a participation rate of 71.15%, where several key resolutions were passed, including the approval of the 2023 annual report and profit distribution plan[104]. - The company has achieved ISO 45001:2018 certification for occupational health and safety management system, emphasizing a "safety first" approach[112]. Research and Development - Research and development investment increased by 4.62% to ¥105,650,008.20 compared to ¥100,984,101.72 in the previous year[59]. - The company is currently developing a multimodal AI model, BioCV VLM 3.0, aimed at enhancing accuracy in computer vision and biometric recognition algorithms[64]. - The company has developed a comprehensive technology system in biometric recognition, achieving recognition for its fingerprint recognition algorithm from regulatory authorities, being one of seven recognized manufacturers[47]. - The company is focusing on the development of multimodal biometric recognition technology, which enhances security and accuracy compared to single biometric recognition methods[44]. - The company employs 1,181 global R&D and engineering personnel and has established R&D centers in multiple locations including India[49]. Product Development - The company launched a new generation of multi-modal biometric recognition products, the zFace series, during the reporting period[20]. - The company has launched the InBioP3000 series smart access controllers, which support four-door and eight-door configurations, enhancing security for medium to large projects[21]. - The company is expanding its product lineup to include 20kW and 240kW DC charging piles, focusing on fast charging solutions for various applications[24]. - The company’s products support various payment methods, including card charging, QR code charging, and mobile payments, facilitating integrated management with smart parking services[24]. - The company is developing a multi-modal AI-based biometric access control terminal that supports high-precision palm and palm vein recognition, aiming to enhance overall technology and product upgrades in the cloud-connected era[9]. Market Presence - The company ranked 14th in the asmag "Global Security 50" list for 2023 and received multiple awards including "Top 50 Innovative Companies" and "Top 10 Smart Office Brands"[42]. - The company has achieved a significant presence in the market, being listed among the "Top 100 Global Security Companies" and winning multiple design awards[42]. - The company has established a global marketing service network with 28 branches, 14 subsidiaries, and 193 service points in China, and 49 subsidiaries in 31 countries, covering over 100 countries and regions[52]. - The company has been recognized as a "Top 15 Access Control Brand" in Latin America and received the "Technology Innovation Award" at the 2023 Security Festa in South Korea[42]. Financial Management - The company has a total of 901 patents, including 160 invention patents, indicating strong innovation capabilities[95]. - The company reported a fair value change gain of ¥4,288,802.32, representing 4.78% of total profit[72]. - The company’s financial liabilities remain at 0.00 yuan, indicating no financial debt[77]. - The company has not engaged in speculative derivative investments during the reporting period[89]. - The company has established a forward foreign exchange management system to mitigate risks associated with foreign currency transactions, ensuring compliance with internal controls[88]. Community Engagement - The company actively participates in community development and charity projects, contributing to rural revitalization and poverty alleviation efforts in Dongguan[115]. - The company has not faced any administrative penalties related to environmental issues and complies with national environmental protection laws[109]. Shareholder Information - The company has a total of 1,541.72 million yuan in ongoing litigation cases that do not meet the disclosure standards for significant lawsuits[120]. - The company has a total approved guarantee amount of 100 million yuan, with no actual guarantees issued during the reporting period[132]. - The company repurchased 2,230,000 shares, representing 1.1455% of the total share capital, with a total transaction amount of RMB 59,683,228.10[138]. - The largest shareholder, Shenzhen Zhongkong Times Investment Co., Ltd., holds 30.05% of the shares, amounting to 58,500,000 shares[139]. - The company has not identified any potential impact on financial indicators such as basic earnings per share or diluted earnings per share due to the share repurchase[138].